Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
OptiBiotix Health (OPTI) has announced that it has filed a new patent to protect advances made in its skin division in identifying microbial proteins which have the potential to prevent Health Care Acquired Infections (HCAI) caused by antimicrobial resistant (AMR) superbugs such as MRSA. The company says HCAIs lead to higher morbidity and mortality, and cost the NHS an estimated £1 billion per year. This represents a global market opportunity of $82 billion.
Yup but it is just a patent filing. Optibiotix says its proteins are likely to be delivered in creams or oils with the aim of reducing the risk of infection from AMR superbugs such as MRSA. The Company claims this opens up product opportunities in multi-billion dollar global markets including Skincare (US$121bn), HCAIs (US$82bn), Eczema (US$3.8bn), Psoriasis (US$7.4bn) and Wound care (US$18.3bn).
Whatever...these are all telephone numbers but it is jam tomorrow. The company's broker on Friday pushed out a note stating:
OptiBiotix is positioning itself right at the forefront of development to help Antimicrobial Resistant (AMR) Health Care Acquired Infections with a new important patent filing. Jim O’Neill was charged two years ago by David Cameron to find answers to the problem that many antibiotics once thought to have put an end to infectious disease are no longer working and the global financial cost of no action would be the loss of 10 million lives a year by 2050 and £69tn ($100tn) a year.
One of O’Neills proposals was the focus on Antimicrobial Resistance is against a backdrop where this is high up on policy makers agendas as evidenced by Lord Jim O’Neils recently published global action plan on the subject and the recent press comments over the last couple of days. OptiBiotix who are developing weapons in the fight against the problem and the blueprint to end the scourge of antimicrobial resistance proposes that drug companies should foot the bill for the development of new antibiotics and that patients should not be able to get them without a test to ensure they are needed. OptiBiotix demonstrated its growing focus on Skin as a key area in its 17 March RNS regarding the Skinbiotix JV with Manchester University. This new patent filing strengthens the Company’s intellectual property portfolio and there is considerable potential for both cosmetic and medical applications.
Ignoring the dire grammar of the broker this is like David Cameron's plans for driverless cars to transform the UK. It may happen but wont pay the bills round at Optibiotix.
At UK Investor Optibiotix boss O'Hara talked of being cashflow neutral before Christmas. What we want to see is concrete evidence of commercialising products.
If yesterday's news leads to something that is great but we need concrete news.
As it happens we expect that soon. And that will re-rate the shares. At 81-84 we are up on this tip and the stance is strong hold.
We expect to be selling at 100p plus before very long.
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